Hurstville Central shopping centre sells to US group

Shopping centres are changing hands at a brisk pace as a US private equity group has made its maiden investment in Australia, buying the Coles-anchored Hurstville Central Shopping Centre in Sydney’s south for $119.5 million.

Meanwhile, supermarket giant Woolworths is carving up its shopping centre portfolio, with the $27 million sale of a Perth centre and the sale of a regional NSW store in the high $20 millions.

The deals come as landlords have been reshaping their portfolios in the face of retail headwinds such as sluggish wages growth and the rise of online players.

In Sydney, the deal for the leasehold property Hurstville Central, with 42 years remaining, reflected a passing yield of 6.07%. The mall sits above the Hurstville train station, one of the busiest transport hubs in Sydney, with direct links to two major bus interchanges.

Sydney property investment firm Cerno put the site on the market in March with $130 million hopes after a refurbishment backed by private investment house AsheMorgan.

Cerno, led by Paul Di Cristo and Mike Figg, acquired Hurstville Central in 2006 when it was a dilapidated and underperforming centre.

Sydney property developer Gabriel Lorentz and his wife, Diana, are major shareholders in owner Hurstville Central alongside Cerno and AsheMorgan.

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